Twoyear Treasury yields hit 4month low
Dollar slides broadly; Gold hits 7month high
China, Hong Kong stocks sink

SINGAPORE, Nov 29 Reuters Treasury yields and the dollar hit multimonth lows on Wednesday after a Fed official made fresh hints of U.S. interest rate cuts, while the New Zealand dollar jumped after its central bank said another hike may be necessary if inflation proves stubborn.

In Asia, MSCI39;s broadest index of AsiaPacific shares outside Japan briefly hit a oneweek high, before weakness in Hong Kong tech shares dragged it to a 0.3 loss.

Japan39;s Nikkei fell 0.3.

The New Zealand dollar was last up 0.9, having blown past resistance to top 62 U.S. cents and make a fourmonth high.

The euro, yen, sterling, Australian dollar, yuan, Swiss franc and a host of Asian emerging market currencies also made fresh multimonth peaks on the dollar, while gold shot to a sevenmonth high above 2,501 an ounce.

Federal Reserve Governor Christopher Waller  an influential and previously hawkish voice at the U.S. central bank told the American Enterprise Institute on Tuesday that rate cuts could begin in a matter of months, provided inflation keeps easing.

Fed funds futures rallied on the remark to price more than hundred basis points bps of cuts in 2024 and a 40 chance they begin as soon as March. Twoyear Treasury yields fell sharply and touched fresh lows in the Asia session.

The market clearly moved on Governor Waller39;s opening up the possibility of cuts, said…